Real Madrid have named Carlo Ancelotti as the coach entrusted with leading the first team next season.

The 54-year-old Italian was widely reported as the front-runner to replace Jose Mourinho, who has returned to manage Ancelotti’s former club Chelsea, at the Bernabeu despite being under contract with French champions Paris St Germain.

Real have not confirmed the length of contract handed to Ancelotti, or if any compensation has been paid to PSG, but a statement published on www.realmadrid.com today read: “Carlo Michelangelo Ancelotti will coach Real Madrid next season.

“The Italian has experienced success in every country where he has managed and arrives in the Spanish capital after being named coach of the season in France.”

Ancelotti, 54, has been linked with the post since Mourinho’s departure and had asked to leave PSG but the deal was reportedly held up until the French champions found a replacement.

PSG announced they had agreed a two-year deal with former France coach Laurent Blanc at the same time as Real made public their agreement with Ancelotti.

Spanish media have reported that Real will pay PSG around €4 million in compensation for the year’s contract he still had left with the French club.